Protecting your business from internal fraud: businesses are also at risk for fraud, and should take steps to protect themselves.

• Author: Orr, Vanessa

While most news coverage today focuses on individual identity theft, businesses are also at risk from within their own companies. "The potential for fraud is very real for businesses as well as individuals," said Debbie Grahek, assistant vice president, Alaska regional marketing/communications, Wells Fargo Bank N.A. "Wells Fargo encourages business owners to take steps to prevent fraud, both internal and external."

Grahek provided the following list of procedures to help companies protect their assets:

* Personally sign on the line. Review all checks and sign them yourself instead of using a stamp or computer-generated signature. Make sure invoices are attached to the checks you sign and that the payee and amount match the invoice.

* Keep close tabs on your bank account. For an added layer of protection, assign a password to your bank account(s) and keep it to yourself. Have bank statements sent to a secure post office box, locked mailbox or your home. Check your statements as soon as you get them and notify your bank immediately of suspicious activity. Better yet, sign up for an online banking service that allows you to view your accounts at your convenience, and take a look several times a month. (Most banks only will reimburse a customer for fraud within 30 days from the statement date.)

* Monitor your mail. Fraud often occurs when office mail is intercepted. Hold the key to your office mailbox and open all mail before turning it over to staff for processing.

* Double up. Set up a dual control system for processing accounts receivable and patient co-payments.

* Separate your payroll. Open up a separate bank account for your payroll or use a payroll service. This way, employees will not have access to your operating account information.

* Accept plastic payments. Use a merchant account processing service and encourage your patients to pay by VISA or MasterCard. Electronic processing of card payments deposits them into your bank account the next day and reduces the chances a payment can be misdirected.

* Have receivables bypass your office. Investigate if a lock box service would be cost effective for...